Legalization of buildings in Serbia has once again come into the public spotlight following the announcement of a new law aimed at resolving the legal status of millions of illegally constructed properties. Estimates suggest that there are around 4.8 million houses, apartments, and auxiliary structures in the country built without construction permits and without registered ownership rights in the real estate cadastre. Such properties have for decades been excluded from the legal market: they could not be sold, inherited, or mortgaged, while at the same time the state lost significant tax revenues. Property legalization is therefore of key importance not only for owners but also for legal certainty in the real estate market and for state budget revenues.
Legalization in Past Practice
Legalization procedures for real estate in Serbia have been applied since the late 1990s, but experience has shown that legalization of buildings is a lengthy, costly, and complicated process. In addition to administrative fees, owners were required to cover further expenses for geodetic surveys, technical documentation, notarial services, and registration in the cadastre. For this reason, legalization in past practice was accessible only to a limited number of citizens. In reality, many cases dragged on for years without conclusion, and only a small number of properties actually received legalization decisions. As a result, a vast number of illegal houses and apartments still remain, creating insecurity for owners and potential buyers alike, while also limiting the ability of banks and investors to use such properties as collateral for loans or investments.
Announcement of a New Procedure
According to the announcement, the new law on the legalization of buildings in Serbia would provide a much simpler and faster procedure. The essence of the legalization process would be a single application, either electronic or paper-based, filed with the Agency for Spatial Planning. The deadline for issuing a legalization decision would be limited to 60 days, enabling faster and more efficient resolution of property status. In this way, the legislator seeks to reduce administrative barriers and give owners the possibility to legalize their property within a relatively short time. If decisions are issued within the prescribed deadlines, the new law is expected to contribute to the mass registration of real estate in the cadastre and their inclusion in the legal market, making legalization finally accessible to the majority of citizens.
Announced Costs of Legalization
As presented in the announcement, fees for legalization of buildings would be significantly lower and standardised:
- Around 70% of properties could be legalized for EUR 100,
- The highest fee of EUR 1,000 would apply to residential properties located in central urban areas,
- For commercial buildings, a fee of EUR 10 per square metre is planned,
- In rural areas, residential and auxiliary structures up to 500 m² could be registered for EUR 100.
This fee structure is intended to make legalization more affordable, broaden access, and encourage a greater number of applications.
Exceptions and Restrictions
The announcement also makes clear that legalization of real estate will not be possible in all cases, as certain restrictions will apply. First and foremost, legalization of buildings will not be permitted for properties constructed on land owned by others, since that would infringe upon third-party property rights. Likewise, legalization will not be possible in areas subject to special protection regimes, such as national parks, nature reserves, and other protected sites.
In such cases, disputed buildings could either become state property or be demolished, thereby safeguarding public interest and natural resources. Another important restriction relates to future construction: any new illegal construction would automatically be registered as state-owned property. Such properties would be used for public purposes, including schools, social institutions, or other facilities of general importance.
Legal and Market Consequences
It has been emphasized that the state would not assume responsibility for the technical safety or urban planning compliance of buildings through this law. The law would deal exclusively with the question of legal ownership. This would enable a large number of properties to enter the legal market, to be used as collateral for loans, and to provide greater legal certainty for both owners and potential buyers.
Business entities and investors would not be able to take advantage of preferential conditions. They would still be obliged to pay contributions for land development, as if they had built through the regular procedure. The proposed law would also not affect any ongoing criminal proceedings initiated for illegal construction.
Conclusion
It is important to underline that this is only the announcement of a new legalization law, while the law itself has not yet been adopted. Citizens and businesses will have to wait for its adoption and publication in order to know with certainty what procedures and conditions they can expect.
The information contained in this document does not constitute legal advice on any specific issue and is provided solely for general informational purposes.
